Support The Moscow Times!

Uzbek Subsidiary of MTS to Be Sold at Auction

The bankrupt Uzbek branch of Russian mobile operator MTS will be sold at an auction in July, following a decision taken by the company's creditors, a news report said Tuesday.

Uzdundrobit, which was declared bankrupt in April, will be auctioned on July 1 at a starting price of $289 million. Bids will be accepted up until June 29, Interfax reported.

Industry regulators initiated an inspection of the company and a case was opened against its managers for operating without a license and avoiding paying taxes in June 2012.

In September 2012, four of Uzdundrobit's managers were sentenced to various prison terms and ordered to pay fines by the court.

The company was also forced to cease its operations by state inspectors, leaving 9,5 million users without network.

Uzbek authorities earlier ordered MTS to pay penalties of over $1 billion, an amount equaling the company's total investment in the country.

However, the company won a small victory in the Tashkent court of appeal in November, which canceled the decision of the lower court to nationalize the company's property. The financial penalties were also reduced to $600 million, and can be paid in installments over an 8 month period.

Related articles:

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more